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Home » Products » Withdrawn Plans » The Whole Life Policy » Benefits
Benefits

Benefits

Insurance Regulatory & Development Authority (IRDA) requires all life insurance companies operating in India to provide official illustrations to their customers. The illustrations are based on the investment rates of return set by the Life Insurance Council (constituted under Section 64C(a) of the Insurance Act 1938) and is not intended to reflect the actual investment returns achieved or may be achieved in future by Life Insurance Corporation of India (LICI).For the year 2004-05 the two rates of investment return declared by the Life Insurance Council are 6% and 10% per annum.

 

 
Product summary

This is a whole of life assurance plan that provides financial protection against death through out the lifetime of the Life Assured.

Premiums:
Under Table Nos 2 & 5 the premiums are payable yearly, half-yearly, quarterly, monthly or through Salary deductions, as opted by you. Under Table No 8 the premium is payable in one lump sum (Single Premium).

Under Table No 2 the premiums are payable for a period of 35 years or up to age 80 years, whichever is later. Under Table No 5 the premiums are payable up to the selected premium paying period.

Under Table No 2 the premiums are payable for a period of 35 years or up to age 80 years, whichever is later. Under Table No 5 the premiums are payable up to the selected premium paying period.

The premiums are payable for the periods as specified above or up to earlier death

Bonuses:
This is a with-profit plan and participates in the profits of the Corporation’s life insurance business. It gets a share of the profits in the form of bonuses. Simple Reversionary Bonuses are declared per thousand Sum Assured annually at the end of each financial year. Once declared, they form part of the guaranteed benefits of the plan. A Final (Additional) Bonus may also be payable provided a policy has run for certain minimum period.

Death Benefit :
The Sum Assured plus all bonuses to date is payable in a lump sum upon the death of the life assured.

Maturity Benefit :
This is a whole of life assurance plan and hence does not have a maturity date. You, however, have the option to take the Sum Assured plus all bonuses declared under the policy anytime after 40 years from the date of commencement of the policy provided you have attained, at least, 80 years of age.

Supplementary/Extra Benefits :
These are the optional benefits that can be added to your basic plan for extra protection/option. An additional premium is required to be paid for these benefits.

Surrender Value :
Buying a life insurance contract is a long-term commitment. However, surrender value is available under the plan on earlier termination of the plan.

Guaranteed Surrender Value :
The policy may be surrendered after it has been in force for 3 years or more. The guaranteed surrender value is 30% of the basic premiums paid excluding the first year’s premium. In case of a single premium policy the guaranteed surrender value is 90% of the single premium paid excluding any extra/additional premium.

Corporation’s policy on surrenders :
In practice, the Corporation will pay a Special Surrender Value – which is either equal to or more than the Guaranteed Surrender Value. The benefit payable on surrender reflects the discounted value of the reduced claim amount that would be payable on death. This value will depend on the duration for which premiums have been paid and the policy duration at the date of surrender. In some circumstances, in case of early termination of the policy, the surrender value payable may be less than the total premiums paid.

The Corporation reviews the surrender value payable under its plans from time to time depending on the economic environment, experience and other factors.
 

SURVIVAL BENEFIT

Sum assured plus accrued bonuses and the terminal bonuses, if any, on the policyholder attaining age 80 years or on expiry of term of 40 years from the date of commencement of the policy whichever is later.

DEATH BENEFIT

Sum assured plus accrued bonuses and the terminal bonuses, if any, on the death of the policyholder are paid to his/her nominees/heirs.Benefit Illustration

Benefit Illustration

Statutory warning
“Some benefits are guaranteed and some benefits are variable with returns based on the future performance of your insurer carrying on life insurance business. If your policy offers guaranteed returns then these will be clearly marked “guaranteed” in the illustration table on this page. If your policy offers variable returns then the illustrations on this page will show two different rates of assumed future investment returns. These assumed rates of return are not guaranteed and they are not upper or lower limits of what you might get back as the value of your policy is dependent on a number of factors including future investment performance.”

Illustration 1:
Table No 2
Age at entry: 35 years
Sum Assured: Rs.1,00,000/-
Premium Paying term: 45 years
Mode of premium payment: Yearly
Annual Premium: Rs.2917/-
  ;

End of year
Total premiums paid till end of year
Benefit payable on death / maturity at the end of year
Guaranteed Variable Total
Scenario 1 Scenario 2 Scenario 1 Scenario 2
1 2917 100000 3900 10800 103900 110800
2 5834 100000 7800 21600 107800 121600
3 8751 100000 11700 32400 111700 132400
4 11668 100000 15600 43200 115600 143200
5 14585 100000 19500 54000 119500 154000
6 17502 100000 23400 64800 123400 164800
7 20419 100000 27300 75600 127300 175600
8 23336 100000 31200 86400 131200 186400
9 26253 100000 35100 97200 135100 197200
10 29170 100000 39000 108000 139000 208000
15 43755 100000 58500 162000 158500 262000
20 58340 100000 104000 288000 204000 388000
25 72925 100000 130000 360000 230000 460000
30 87510 100000 156000 432000 256000 532000
35 102095 100000 182000 504000 282000 604000
40 116680 100000 208000 576000 308000 676000
45 131265 100000 234000 648000 334000 748000


Illustration 2:
Table No 5
Age at entry: 35 years
Sum Assured: Rs.1,00,000/-
Premium Paying term: 15 years
Mode of premium payment: Yearly
Annual Premium: Rs.4,444/-

End of year
Total premiums paid till end of year
Benefit payable on death / maturity at the end of year
Guaranteed Variable Total
Scenario 1 Scenario 2 Scenario 1 Scenario 2
1 4444
 
100000 3900 10800 103900 110800
2 8888
 
100000 7800 21600 107800 121600
3 13332
 
100000 11700 32400 111700 132400
4 17776
 
100000 15600 43200 115600 143200
5 22220 100000 19500 54000 119500 154000
6 26664
 
100000 23400 64800 123400 164800
7 31108
 
100000 27300 75600 127300 175600
8 35552
 
100000 31200 86400 131200 186400
9 39996
 
100000 35100 97200 135100 197200
10 44440
 
100000 39000 108000 139000 208000
15 66660
 
100000 58500 162000 158500 262000
20 66660
 
100000 104000 288000 204000 388000
25 66660
 
100000 130000 360000 230000 460000
30 66660
 
100000 156000 432000 256000 532000
35 66660
 
100000 182000 504000 282000 604000
40 66660
 
100000 208000 576000 308000 676000
45 66660
 
100000 234000 648000 334000 748000

;
Illustration 3:
Table No 8
Age at entry: 35 years
Sum Assured: Rs.1,00,000/-
Premium Paying term: 1 year
Single Premium: Rs.45,565/-
 

End of year
Total premiums paid till end of year
Benefit payable on death / maturity at the end of year
Guaranteed Variable Total
Scenario 1 Scenario 2 Scenario 1 Scenario 2
1 45565
 
100000 4300
 
18700
 
104300
 
118700
 
2 45565
 
100000 8600
 
37400
 
108600
 
137400
 
3 45565
 
100000 12900
 
56100
 
112900
 
156100
 
4 45565
 
100000 17200
 
74800
 
117200
 
174800
 
5 45565
 
100000 21500
 
93500
 
121500
 
193500
 
6 45565
 
100000 25800
 
112200
 
125800
 
212200
 
7 45565
 
100000 30100
 
130900
 
130100
 
230900
 
8 45565
 
100000 34400
 
149600
 
134400
 
249600
 
9 45565
 
100000 38700
 
168300
 
138700
 
268300
 
10 45565
 
100000 43000
 
187000
 
143000
 
287000
 
15 45565
 
100000 64500
 
280500
 
164500
 
380500
 
20 45565
 
100000 114500
 
498500
 
214500
 
598500
 
25 45565
 
100000 143000
 
623000
 
243000
 
723000
 
30 45565
 
100000 172000
 
748000
 
272000
 
848000
 
35 45565
 
100000 205000 872500
 
305000
 
972500
 
40 45565
 
100000 229000 997000
 
329000
 
1097000
 
45 45565
 
100000 258000 1122000
 
358000
 
1222000
 

Note:

i) This illustration is applicable to a non-smoker male/female standard (from medical, life style and occupation point of view) life.

ii) The non-guaranteed benefits (1) and (2) in above illustration are calculated so that they are consistent with the Projected Investment Rate of Return assumption of 6% p.a. (Scenario 1) and 10% p.a. (Scenario 2) respectively. In other words, in preparing this benefit illustration, it is assumed that the Projected Investment Rate of Return that LICI will be able to earn throughout the term of the policy will be 6% p.a. or 10% p.a., as the case may be. The Projected Investment Rate of Return is not guaranteed.

iii) The main objective of the illustration is that the client is able to appreciate the features of the product and the flow of benefits in different circumstances with some level of quantification.

iv) Future bonus will depend on future profits and as such is not guaranteed. However, once bonus is declared in any year and added to the policy, the bonus so added is guaranteed.

v) The Maturity Benefit is the amount shown at the end of 45 years.

Life Insurance Corporation of India – Corporate Office : Yogakshema Building, Jeevan Bima Marg, P.O. Box No – 19953, Mumbai – 400 021 IRDAI Reg No- 512
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